Tips for Buying a New Home

• Tips for Buying a New Home

Whether you’re buying your first house or are looking for an upgrade, the process can be complex and intimidating. After all, it’s likely the largest financial decision you will make. BBB has the following tips to help make the home buying process go a lot more smoothly.

“Purchasing a new home is more than a financial decision, it’s an investment in your future and a commitment to a place where memories will be made for years to come,” Mechele Agbayani, President and CEO of BBB Central East Texas said. “Taking care of preliminary items before you begin your search will make the process more enjoyable.”

Get your finances in order. Analyze your savings, sources of income, debts, and monthly expenses. If you don’t already have a budget, create one and determine how much money you can allocate towards a down payment and a monthly mortgage payment.

Look at your credit score and ensure it’s in good shape. According to Experian, a credit score of 620 is generally required by mortgage lenders to buy a house with a conventional mortgage. If you’re looking for credit repair and debt relief services, do your research and know who you can trust.

If you need assistance with the financial planning aspect of buying a house, hire a financial planner. These professionals can help you evaluate your finances, start a budget, and plan for your home purchase.

Get pre-approved. Pre-approval can further help you determine your home budget and give you a competitive advantage when putting in offers. To get pre-approved, find a trusted mortgage lender that fits your needs. Your mortgage lender will go through the available types of mortgages, costs, and interest rate options.

Depending on where you live and your current financial situation, grants and programs may be available for first-time home buyers who meet specific eligibility criteria. Ask your mortgage lender about options.

Determine your needs vs. your wants. Make a checklist to help determine the average cost of a house that meets your needs and can help you narrow down the homes you want to tour.

Consider the number of bedrooms and bathrooms you need, whether a dedicated home office space is essential, whether you need a garage, or if your furry friends need extra backyard space. Do you need appliances to be included when purchasing your home? Are you willing to DIY or spend money on renovations, or are you looking for a move-in ready, recently renovated space? Your answers to these questions may change as you start to tour homes, but it’s good to have a starting point in mind.

Location, location, location. Location is one of the most important things to be considered when purchasing a home. Consider how your new home will play a role in your lifestyle, whether you prefer urban areas, rural living, or somewhere in between. Do you want to live in a walkable location near shops and restaurants? Is it essential that you live near a public transportation system? Are parks and outdoor recreation areas important to you? Consider how far you’re willing to commute to work and how close you need to be to the nearest highway or interstate. If you have children or plan to start a family soon, looking into school districts, extracurricular activities, and nearby daycare availability is also a good idea.

Get professional assistance. A good realtor will prioritize your best interests, dedicating many hours to find you the right home. Once you find the right realtor, loyalty is key. That’s why it’s important to do your homework to find the right trusted realtor or real estate agent before beginning your search. Keep in mind, new legislation will change how agents are compensated beginning in the late summer of 2024.

For more information:

For more tips on all aspects of owning a home, go to BBB’s Your Home HQ page. It’s your one stop resource for everything from financing to building to repairs and maintenance.

ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada. BBB Serving Central East Texas was founded in 1985 and serves 19 counties in East Texas.